Are you thinking of remortgaging?

August 10, 2017 by Brendan O'Neill

Advice & Tips

According to data from CACI, a mortgage database, mortgages to the value of £17bn are expected to reach maturity in September, with £18bn expected in October. This means there may be some people considering remortgaging.

Once a fixed rate or discount deal reaches its conclusion, a buyer either goes onto the standard variable rate of the lender, or remortgages to a better deal. As standard variable rates tend to be higher, a borrower who switches to a fixed rate deal will usually notice the lower monthly repayments. According to Rachel Springall, a finance expert with Moneyfacts, buyers can save thousands over the term of the deal, especially when it is a longer term like five years.

However, buyers who are considering remortgaging will still have to face the affordability checks, which were introduced as a result of the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in 2014. Preparations for these checks should start before the remortgage application process to increase chances of being accepted by a lender. Reducing spending and paying off outstanding loans and credit cards will help increase chances of being accepted for a product.

Some people may find that they struggle to remortgage, especially if their circumstances have changed. For instance, if you go from being employed to having your own business, you may struggle to be accepted by a lender. This is when a CeMAP qualified mortgage advisor can be really helpful, as they are aware of the criteria of various lenders. Professional help can make it easier to find a cheap deal and be accepted.